There have been significant developments in the way supranational organisations and countries have been collaborating to achieve greater transparency in respect of the tax compliance of their residents.
The global focus by governments on maximising tax revenues has resulted in a co-ordinated effort to achieve greater transparency in respect of assets which residents are holding offshore and verifying that the income and gains generated on the assets have been correctly assessed to tax. This is complemented by an increased emphasis on civil and corporate deterrents in respect of those deemed to have been evading tax or enabling tax evasion.
There are currently a plethora of information sharing arrangements which are either in place or are in the process of being implemented which assist governments with this aim. Different transparency regimes may apply depending on the jurisdiction in which the asset is located and the residence of the respective parties. For individuals holding assets in multiple locations, it is also possible that they will be subject to reporting under more than one regime.
HSBC is committed to ensuring that it is fully compliant with its obligations under the respective transparency regimes.
If you would like more specific guidance in respect of the operation of the Foreign Account Tax Compliance Act (FATCA) or the Common Reporting Standard (CRS), please visit our dedicated webpages for more information in respect of these regimes.